Monday, March 09, 2009

Markets have lost more ground last week, and to comfort the prevailing gloom and doom scenario, the Fib expansion pattern on the weekly chart has ... a negative XOP target price ! Short sellers obviously do enjoy causing a bit of panic, but let's try and be rational here.

60 mins:The fall has at least temporarily stopped on a MM level where we saw some bounce late in the day with a few short sellers buying back positions (very low volume though).Entropy also shows a potential bit of a reprieve even if stall level (~328) is now in sight and could be hit this coming week. In any case, there is no reason to change our scenario as long as prices stay below 375 (now strong Fib + MM resistance).

Daily:Here too, MTFS is so oversold that one can only imagine a limited bounce for now. The same 375 level is key to any change in market mood and selling pressure remains so strong that even if some buying lifts prices momentarily, the Fib expansion target (high 320s) is likely to be reached within a week or so.While volume is good, one should probably see a high volume bar near Entropy bottom (not quite there yet) to announce a potential reversal.

Weekly:The comment above is a bit of a joke, even if mathematically possible. Having said that, one can't see what would stop ER from touching stall level on low 310s within a few weeks.

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Welcome !

And enjoy your visit to this little "Market Snapshot" blog.

The market report blog has now moved toForeTrade while this one will (time permitting) focus on actual chart commentaries on TF and ES eminis, as well as EURUSD to show how accurate and yet simple our proprietary method is. The reason for this change is that the Toolset itself is no longer for sale itself, simply because the sales effort and training/support activities were too time consuming. I now provide market analysis exclusively to fund managers until the technology is finally sold to a fund or financial institution. The blogs and Twitter will then be closed or turned private. Anyway, enjoy while it's there...

A closer look:Behind these market snapshots lies an advanced TradeStation toolset including a set of C++ DLLs and API to access various advanced realtime calculations stored in the DLL to be used either within TS or with custom VC++ programs. While seemingly a little complex at first, the technique is actually relatively easy to grasp. In fact, since most humans can only memorize 3 to 5 (sometimes up to 7) pieces of information at any one time, and the technique being discretionary, it was essential to keep it as simple as possible.

What are those snapshots made of ?In a nutshell, all reports are based on a minimum of 1 symbol in 3 Time Frames: 60mins, daily and weekly, themselves using more or less the same indicator set: self-adaptive swing indicator, MTFS (formerly AdStoK) and self-adaptive Entropy and a few visual aids (swing direction, support/resistance levels and paintbars). "Self-adaptive" is the key word here. There is virtually no parameter to tune, and it can be used as is, for virtually any market symbol. Each chart provides a visibility 3 to 5 bars ahead, so actual trading should obviously be complemented by a sound money management technique.

A common question : Why isn't there a user documentation then? Hmmm... Who ever reads manuals...? Well, I might provide one eventually but at the same time I might not... The reason is that it is more important to absorb the method over a period of time and make it one's own, i.e. then adapt it to one's own trading profile.For the keen developer, a detailed API documentation for this set of advanced TradeStation Analysis Techniques will be released shortly.For the time being a separate technical blog has been launched for those of you interested in learning a little more about what's under the bonnet.For more info: voisin DOT bruno AT gmail DOT comRSS Feed: http://feeds.feedburner.com/blogspot/CImq